Tax Bands and Rates
Scottish Rates 2024/25
Taxable Income Band Tax Rate
Over £12,571 to £14,876 Starter rate 19%
Over £14,877 to £26,561 Scottish basic rate 20%
Over £26,562 to £43,662 Intermediate rate 21%
Over £43,663 to £75,000 Higher rate 42%
Over £75,001 to £125,140 Advanced rate 45%
Above £125,140 Top rate 48%
Rest of the UK/Welsh rates
Taxable Income Band Tax Rate
Over £12,571 to £50,270 Basic rate 20%
Over £50,271 to £125,140 Higher rate 40%
Above £125,140 Additional rate 45%
The income tax thresholds will be frozen until 2028. From 2028/29 they are expected to rise in line with inflation.
Savings rates
Starting rate 0%
Basic rate taxpayers 20%
Higher rate taxpayers 40%
Additional rate taxpayers 45%
These rates apply to savings income received above the savings allowance of £1,000 for Basic rate taxpayers and £500 for Higher rate taxpayers
The starting rate does not apply for individuals who have non-savings taxable income (broadly earnings, pensions, trading profits and property income) exceeding £5,000
Dividend rates
Basic rate taxpayers 8.75%
Higher rate taxpayers 33.75%
Additional rate taxpayer 39.35%
These rates apply to dividend income received above the £500 tax-free dividend allowance.
Pension tax limits
Annual Allowance: £60,000
Minimum Annual Allowance: £10,000
Threshold income: £200,000
Adjusted income: £260,000
Lump Sum Allowance: £268,275
Lump Sum and Death Benefit Allowance: £1,073,100
Individuals who have Threshold income for a tax year of greater than £200,000 have their Annual Allowance restricted. It is reduced by £1 for every £2 of Adjusted income over £260,000, to the Minimum Annual Allowance.
The Lump Sum Allowance relates to the general maximum that may be able to be taken as a tax-free lump sum.
The Lump Sum and Death Benefit Allowance relates to the general maximum that may be able to be taken as a tax-free lump sum in certain circumstances
Individual Savings Accounts
Investment Limits
2024/25 2025/26
Individual Savings Accounts (ISAs) £20,000 £20,000
Junior ISAs £9,000 £9,000
Lifetime ISAs (excluding government bonus) £4,000 £4,000
Child Trust Funds £9,000 £9,000
